Let’s set up, EU national consumer bodies ask VW over Dieselgate

7 years ago - Published in Finance, Fundamental Analysis

The EU consumer authorities and the European Commission on September 7 sent a joint letter to the CEO of Volkswagen urging the group to swiftly repair all cars affected by the “dieselgate” scandal, the Commission said, adding this is part of a coordinated action by EU consumer authorities to make sure that the Volkswagen group respects consumer law in the aftermath of the scandal and is proactive towards the consumers concerned.

VW has pledged billion of dollars to compensate owners of its diesel cars in the United States, where it admitted to cheating emissions test in 2015.

But it has so far rejected such calls for the 8.5 million affected vehicles in Europe, where different legal rules weaken the chances of winning a pay out.

The agencies from the EU’s 28 member states call in the letter, signed by the European Commission and the Dutch consumer authority, which has taken the lead in the case, for Volkswagen to confirm it can meet its own timeline for removing illicit software that cheated emissions tests.

“I am pleased to see that consumer authorities, as enforcers of EU law, are united in their approach concerning Volkswagen, and that they insist that our demands are respected,” European Commissioner for Justice VÄ›ra Jourová said.

“More than 8 million consumers in different Member States have been affected by the VW case. When there are pan-European problems like this, only by acting together can consumer authorities ensure that EU consumer law is respected everywhere in the Union. With today’s joint position, EU consumers can be sure that both consumer authorities in Member States and the European Commission are on their side and that any half measurers will not be accepted,” she added.”

While the letter makes a show of unity, it will still be up to member states individually to follow up with action to defend its consumers.

The letter, addressed to VW’s CEO, urged the carmaker to inform affected car owners as soon as possible, to make legally-binding assurances that the technical fix will not diminish the value of their vehicles, help ease the work of car dealerships, and be prepared to extend the period for offering free repairs.